All Forum Posts by: Senthil N.

Thanks you. I would also like to get the view point of Property Management Companies.

In my years of renting and being a landlord this was never requested. However my client's tenant wants my client (the landlord) to open the house and be available for contractor to come in for repairs, and claims it is the owner's responsibility. Is it the owner's responsible for opening the doors, if the tenant is busy? Can the owner install a lock-box? And for lock-box of course I would try to get tenant's permission and request to waive any liability, which the tenant may not be wiling to provide. In this instance it was just an hour repair with a 2-hour window.

Hello @Account Closed: I have used the Zillow API to research properties and it is cool. It actually has additional data points that is not available or easy to get from the website. To answer your question, most of the criteria I use to filter the properties is already on MLS. I used Zillow only when I am interested in the next step - which is to look at the house. And that particular task does not happen often - once a month or so is when I find a great deal that interest me, I look it up on Zillow. Assuming you are new to investing, after a while you will already know what is a good deal and what is not, just by looking at the MLS. Getting accustomed to the market is a key to finding great deals and you are certainly on the right path as far as researching the properties goes. Over time you should be able to add MLS filters that will automatically narrow your search down to only those that you really want and that list is small (as it should be) that you won't need automation to look up Zillow.

I would however love to hear your thoughts as well on this.

When you are dazed and confused it means you need to complete more Home Work!  I would confirm all of the data presented again.  Verify market price of house, the rent, the "rentability" of the place, the type of tenants and if you are willing to deal with them, etc.  The very question you ask of BP you will need to do the leg work to find out the answer. I would start with Zillow to do your research.  Even if there is such thing as cookie cutter deals, each location/house is unique.  Don't miss a deal because it's not conformant to what others claim to do.  When everything is said and done, make sure you have enough cash for safety net if things do not go as planned; as a 1st time home buyer you are bound to overlook some specifics. For out of state property I would price in the cost of home warranty. However I won't bother with property managers as they cut into your profits and tend to alienate tenants.  With out of state I would want to have a good rapport with tenants so you are able to "connect" with them even via phone.  I suspect you will do great!

Do you need an attorney or can you not DIY?

Completed survey yesterday.  Will the survey results be posted anytime soon?  Would love to see the summary results.

The advantage is limited liability in case a damage claim is made. Now instead of allowing your rental to go belly up with a large claim, it is better to purchase adequate insurance to cover yourself. Having a LLCs is too much work and I don't believe there is any real tax benefit. There are many threads on whether to LLC or not and mostly the answer is not.

It will be odd to pretend you are the property manager when you are the owner!  Where did you read this garbage that you should lie about who you are?!  Tenants in my humble opinion respect owners a lot more than property managers.  Establishing a rapport with your tenants is the way to go.  Don't sweat this, it's quite simple.

Thanks @Basit Siddiqi & @Natalie Schanne.

I have not read Rich Dad and the reasons why the claim is made that owning is a liability.  Here is why owning makes sense to me:  (1) You can get a house for 5% down.  That is significant considering you need 20% down for investment.  1/4th the investment money required.  (2) Lower interest rate for home owners  (3) Slightly better insurance rate  (4) Tax free capital gains tax of 250k to 500k depending on your marital status. (4) Itemized tax deduction benefit (5) You are your best renter!  

The disadvantages are if you own a Condo you cannot deduct the high HOA fees. Repairs cannot be deducted. However you can add major renovations to your basis reducing your tax if your investment return is over the capital gains limit.

And I am unsure how renting from yourself will actually help.  You can always rent your homestead property and then rent from someone else, if for whatever reason you wanted to do this.  That is a simpler way to achieve what you are looking for.  I am curious to know why though.